Resource World Magazine

D E C E M B E R / J A N U A R Y 2 0 1 8 www.resourceworld.com 73 Australian Update by Greg Barns I n Western Australia's Pilbara region it is usually iron ore (and recently Novo Resources) that gets the attention of investors. But the region is now becom- ing known as a rich gold province and Millennium Minerals Ltd. [MOY-ASX] is running a strong operation at its Nullagine Mine about 185 km north of Newman in the East Pilbara mineral province. In 2016, Nullagine produced 65,994 oz gold and by 31 December 2017 is aiming to produce 75-80,000 oz. Millennium Minerals owns 264 km 2 in what it describes as the "under explored and highly prospective" Mosquito Creek Gold Belt. Ore is treated at a 2Mtpa CIL ore treatment plant. About 75% of the company's 1.3M oz resource is mea- sured and indicated. Total resources at 31 December 2016 stood at 31.8 Mt grading 1.3 g/t gold, for 1,280,400 oz, and reserves at 3.99Mt at 1.4 g/t gold, for 185,900 oz. There is plenty of exploration and pro- duction upside, according to Millennium, with over 220,000 metres drilled in 2016 and 150,000 metres so far in 2017, focus- ing on targeting incremental oxide ounces, near-mine shallow targets, including exten- sions adjacent to existing pits and new brownfields discoveries. Results so far has been a 48% increase in reserves (after min- ing depletion) to 186,000 oz as of 31 Dec 2016. Millennium is aiming to become a +100,000 oz producer and it is focus- ing on its Barton Underground Project while continuing to increase its oxide exploration expenditure to US $17.6M for 2017. Indicated and inferred resource estimates for Bartons Underground com- prises 475,900 tonnes grading 5.3 g/t gold for 80,400 oz of contained gold. In a November 2017 press release the company said that it is now "moving ahead with a fast-tracked Feasibility Study aimed at commencing underground development in Q1 2018. This Feasibility Study is progress- ing well, with the in-fill drilling currently underway aimed at upgrading the inferred resource to indicated status above the 218 RL level, and facilitating completion of a maiden ore reserve estimate." Drill results from the Bartons deposit included 11 metres of 21.5 g/t from 43 metres (incl. 3m of 62.2 g/t Au from 43m) and 17 metres of 8.97 g/t from 41 metres (incl. 7m at 19.84 g/t from 47m). Millennium has been producing at an AISC of US $1,088 -1,112/oz. With the AUD dollar gold price at the time of writing at around AUD $1,675; this is rea- sonable, particularly given complications with heavy rains in the first half of 2017. Gold analyst, Mike Millikan, from Perth- based brokers Hartley's is optimistic about the Barton's Project, remarking that "The Phase 1 underground current resource estimate is ~80,000 oz grading 5.3 g/t gold but with the system still open at depth and drilling ongoing, we expect resources to grow and confidence to increase." The company is keen to exploit longer life and larger scale deposits and is gear- ing up its processing capacity to do so with an integrated CIL and flotation circuit at a capital cost of US $32 M-36.8 M to be constructed. Millennium Minerals is debt free with US $22 million in cash and bullion. n Millennium Minerals increasing production and reserves YOUR GATEWAY TO CONNECT www.cargologisticscanada.com 30+ SEMINARS • 150+ EXHIBITS NETWORKING OPPORTUNIES AROUND EVERY CORNER REGISTER ONLINE

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